Association of Town Finance Committees Annual Meeting...Association of Town Finance Committees Annual Meeting Jack McCarthySteven Grossman Executive DirectorChairman, State Treasurer

Association of Town Finance

Committees Annual Meeting

Jack McCarthy

Executive Director

Steven Grossman

Chairman, State Treasurer

Massachusetts School Building Authority

www.MassSchoolBuildings.org

Our Mission

Partner with Massachusetts communities to support the design and construction of educationally-

appropriate, flexible, sustainable, and cost-effective public school facilities.


www.MassSchoolBuildings.org 3

About Us

An Independent Public

Authority

Created in 2004 by an Act

of the Legislature

Seven-member Board of Directors chaired by Treasurer Steven Grossman

Board of Directors: Invites Districts to Participate

Approves Proposed Solutions

Approves Projects and Grants


About Us

The Commonwealth has dedicated 1 cent of

the statewide 6.25 cent sales tax (excluding

meals) to the MSBA

MSBA has a robust program of over 300

projects currently in our current capital

pipeline


A Few Achievements

$10.9 billion in payments to cities, towns and

regional school districts

MSBA has completed final audits of 1,023 projects

totaling more than $16 billion in submitted costs

Audited over $3 billion in costs for the projects currently

submitting monthly requests for reimbursement

Made over 850 site visits to more than 200 school districts as part of the MSBA’s review and due diligence process

5

Building

With Us


All Projects

NEW

MODEL

ADDITION/RENOVATION

ACCELERATED REPAIR

TO BE DETERMINED

PROJECT TYPE:

MAJOR REPAIR

402 Total Projects


2014 and Ahead Project Status - Capital Pipeline, All Projects (as of September Board of Directors’ Meeting)

Finance Overview



Sources and Uses

Dedicated Sales Tax/Bond Proceeds/

Other Income

Former Program Inherited

Liabilities/Commitments New Program Debt Service

Operations

Inherited Programs Update

Made more than $8.6 billion of grant payments to districts since FY05 towards more than 1,100 inherited projects

More than 97% of inherited Waiting List liability retired to date

More than 81% of inherited Prior Grant commitments retired to date


Municipal Finance Laws Regarding

Former Program Annual Payments

M.G.L. Chapter 70B, Section 19

If there is a decrease in the amount of interest payable

related to a Project due to a refunding, the MSBA will

recalculate the grant to share in the savings

M.G.L. Chapter 70B, Section 15

Districts must provide notice to the MSBA of any sale,

lease or removal from service of an assisted school

building or a portion of an assisted school building

MSBA may recoup some of its investment and provides

that future applications by the District may be affected


Massachusetts School Building Authority 13

FY15 Grant Payments Update

* Reflects grant payments as of September 30, 2014.

FY2015 YTD Grant Payments Summary*

Program Grant Payments # Projects # Districts

New Program 148,572,448 135 97

Prior Grants 48,850,018 73 58

Waiting List 16,399,490 28 21

Total 213,821,956 236 152

Process for MSBA

Funding


15

Building With Us (http://www.massschoolbuildings.org/building)


Funding the Project

Three agreements that allow for payment: Feasibility Study Agreement (FSA)

Project Funding Agreement (PFA)

PFA bid amendment (PFA bid)

Project Funding Agreement (PFA) Standard agreement that the MSBA enters into with Districts

whose school projects have been approved

After the PFA has been executed, and all other MSBA requirements have been met, the District can begin submitting requests for reimbursement to the MSBA for project costs beyond the Feasibility Study.



Reimbursement Rates (M.G.L. c. 70B)

Base rate for each district of 31 percentage points

Three Ability-to-Pay Factors can increase the

reimbursement rate from the base before addition of any

applicable incentives:

– Community Income Factor (0-12 percentage points)

– Per capita income

– Source: MA DOR

– Community Property Wealth Factor (0-28 percentage points)

– Per capita equalized property valuation

– Source: MA DOR

– Community Poverty Factor (0-17 percentage points)

– Eligibility for Federal Free/Reduced Lunch

– Source: MA DESE

Maximum rate, including incentives, not to exceed 80%

MSBA New Program Payments

Progress Payment System

Enables MSBA to audit and pay as projects progress – Captures detailed project budget and cost data

Districts submit paid project costs monthly for MSBA review and applicable reimbursement

Districts avoid having to borrow the MSBA’s share of project costs – Reduces local debt

Consistent, predictable payments allow communities to better manage their cash flow


Pro-Pay training

Districts with an executed Feasibility Study Agreement or Project Funding Agreement are required to attend a Pro-pay training.

Pro-Pay Trainings are offered at the MSBA’s office once a month on a Friday (schedule is subject to change)

Trainings are posted on the MSBA’s website calendar: http://www.massschoolbuildings.org/calendar-date



The MSBA requires and pays for building commissioning

for MSBA-funded projects

Independent third party testing a building’s systems and

materials, and the operation of the building as a whole

MSBA commissioned buildings undergo an intensive quality

assurance process that begins during design and continues

through construction, occupancy, and operations

Commissioning ensures that the new building operates

efficiently, and as the owner intended

Commissioning also prepares the building staff to operate and

maintain building systems and equipment

Commissioning

Completing the Project Closeout Process

21 www.MassSchoolBuildings.org


MSBA pays up to 95% of the estimated

maximum total facilities grant, pending completion and approval of the MSBA’s final audit

Completing the Project Closeout Process

MSBA Resources

Massachusetts School Building Authority

24

Policies & Guidelines (http://www.massschoolbuildings.org/guidelines)



Geographic Information System (GIS)

Geographic

Information

System (GIS)

a comprehensive

mapping tool

allowing the user to

view individual and

overview project

information across

the Commonwealth

25


Stay Updated on the MSBA

Visit us online at


Like us on Facebook

Follow us on Twitter

(@MASS_sba)

Documents

Association of Town Finance Committees Annual Meeting...Association of Town Finance Committees Annual Meeting Jack McCarthySteven Grossman Executive DirectorChairman, State Treasurer